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This Week in Defense

News/Business. Guests from the Defense Department, Congress and the defense industry.

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CBS

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00:30:00

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Annapolis, MD, USA

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Channel 77 (543 MHz)

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mpeg2video

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ac3

PIXEL WIDTH
528

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480

TOPIC FREQUENCY

India 21, Us 6, Europe 5, Brazil 4, France 4, Va 2, Kate 2, Vago Muradian 2, Pentagon 2, Marcus 2, Spain 2, Britain 2, Hanestan 1, Enzo Cazellini 1, Hafal 1, The Pentagon 1, Air Force Unit 1, Uav 1, Kate Branan 1, Un 1,
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  CBS    This Week in Defense    News/Business. Guests from the Defense  
   Department, Congress and the defense industry.  

    July 3, 2011
    11:00 - 11:30am EDT  

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next on this week in defense news, why congress is cutting the administration
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welcome to this week in defense news i'm vago muradian. frances deso and the euro fighter are finalists in the fighter competition. the two ceos of the two companies will tell us why they will win the multi million contract. but first, frustrated that the administration has not come up with their budget plan, a congress obsessed with debt reduction is making defense cuts of their own. in 2012 the senate wants to
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cut 6 billion, the house wants to cut 8.9 million. here to join us is kate branan and marcus wiseburger. guys thanks for joins us. >> thank you. >> kate let's start with you. why is the congress says and what is it doing in the future. >> first the congress has passed a budget for 2012. that meets the president's requirements. that heads chairman buck mckeon. he's have been -- he's very opposed to cuts in defense. and then on the senate side, the authorization bill was passed a couple of weeks ago. that cut $6 billion and when that was introduced by senator carl resin he expressed
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frustration that the house had not given further guidance on what to cut. so they said we'll cut an extra 2 million to make sure that's enough. eventually $19 million were cut from the president's 2011 request. >> marcus, let's go over to you. what do we know about the roles and mission review, where it's going to take us and what it's going to target. >> we know it's going to take place this summer. it will shape the 2013 budget: an unknown is will it come back to shape what congress is debating right now in the 2012 budget. we know each service has formed a team that's looking at specific areas to cut. however, everything is being kept very close to the vessel right now. >> there are all sorts of things like cuts air force and
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fleets. some of this is organization administration stuff. >> right, there's plenty of rumors going on on to what exactly they're going to cut. from weapons systems to entitlement and in strength even. >> let me ask you how are the debt reduction talks are going to impact defense spending in 2012 and beyond? >> i think they're more important than the appropriations process that's going on in the hill. they are between white house and congressional leaders right now and they have this august 2nd deadline when the debt ceiling has to take place. for both sides defense spending is a big bargaining chip. looks like defense will take a bigger cut because of that. >> every single one of the panels has recommended bigger cut spending. secretary gates has even said he was expecting a bigger number than 400 billion or that some of the estimates out there were bigger than 400 billion. marcus, what are some of the
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things the pentagon doing to prepare for a leaner future. gates was the one out there arguing to keep spending levels high. >> well up to now, the pentagon mainly way of saving money is through efficiencies. last budget go around for over five year period they said we will save $178 billion. however they reinvested 100 billion. now they believe more work can be done in terms of efficiencies, however more has to be done in terms of whether it's weapons, whether it's instrain. >> kate let me end with you, do we know, now that we have some of the these proposals on the floor, do we know where the 2012 defense bill is going to ultimately end up? >> i think all of the bills that have been passed so far, i think you will see defense get cut much more than has already been done so.
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like we said earlier with the 2011 budget, 19 billion have been cut. so far we've only cut 9 billion. i think there's a lot of room to still cut with defense. >> guys, thanks very much for joining us, we really appreciate it. coming up, why france thinks that it
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india's competition for 126 few fighter jets is the biggest such contest in the world. many expected new dehli to pick two. the two planes are among the most advanced fighters in the world. first we'll hear from eric trapie the president of the air force unit. desoe twin engine the successor to the company's fighter barrage made his combat debut over afghanistan in 2007 and is now in action over libya. but is yet to win its first export order. >> i wanted to start by congratulates you on the down selection in india, but ask you how are you going to beat your competitor from india. >> it's a big celebration for everybody. thank you for congratulating us for india, we are happy to be
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in the final in india but it's only a start. we now have to negotiate about final stage and selection. how we may beat, , we feel that our are accomplish the mission. and different types of weapons which may be accommodate with our aircraft. so really, the choice to select hafal from aircraft carrier was really a good choice which we may see now active in some part of the world. with the french operations. >> do you think work share is going to be an important part of that final decision.
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>> of course, it's a capability for sure, we're not going to sell 126 aircrafts off the shelf. we will sell parts of the shelf and then these will be coproduced in india and at the end of this tour, india will be able to produce completely the aircraft. >> reporter: but what sort of challenges does that present to you? of the big fighter houses, one of the smaller oneless. ones. you are a lot of propriety equipment. how would you make sure you're not damaging yourself against the new india competitor a few years from now. >> of course a lot of technology is going to be transferred to india. at the same time, a long term partnership is going to be established, and based on this long term partnership we will get some offers from india to
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leave. also to design new parts in france, it's a long term commitment. so we will find our interests in this partnership. >> reporter: do you think that the -- as you look forward to the markets around the world you're active in brazil and chasing that competition. is there anything you're learning in india that is is going to help you in brazil and what are some of the other projects you're going to be active in. >> each country is going to be different. in brazil we did a great job with industry. we have a full commitment of transfer technology. from industry but also from our french officials. and we learned that transfer technology meaning, you may give that the company in front of you should be able to receive. so what is in important is to find the right partners in brazil and in india. that's the most important. to be able to receive technology to be able to
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produce, and to ensure manufacturing with quality. >> reporter: so what other markets are we going to be seeing you compete in? >> you know that we don't comment so much about market, but we're involved in some business with un. we're a long term partner with them. >> reporter: a decision soon? >> it's up to the customer to decide, we are ready. >> reporter: let me ask you, one of the issues is as you manufacturer, as you do a partnership that changes the profitability. how do you make sure at the end of the day a profitability is positive. >> it has to do with the global. it's what we would have been decided within the contract, the full contract. which includes some aircrafts to be produced in france. some new developments and some
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step by step manufacturing in india. for us to reach the ultimate state which is complete manufacturing in india. >> reporter: do you think, is it at a reduced margin or can it still be healthy? >> depends on how you negotiate the contract and how the argument will be decided. but of course our target is to keep our margin. >> reporter: let me take you to the question of development of the uav, one of the big issues at the air show has been concerned about the future manufacturing capabilities. while there's enormous growth in it there are those that say you have to start investment in the new technology. and that a french involvement in the uav is not enough. is that enough to get the critical capabilities. >> we are producing jets so it is to be seen as a global view
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in the market as well. >> and introducing new models regularly. >> many in manufacturing. so what are we interested in is for uavs is the technology, the capability to have design in our company. which means engineering in military capabilities, in terms of weapons, in terms of flight testing. which is really dedicated for military applications this is what we are expecting from the corporation based on the common requirements and we would share the work between va and vessel and we have an agreement that would be behind in this operation and we would be in charge of the mission system integration. >> reporter: even though you and va are going to be cooperating, you both have been historic rivals. what are you putting in place because you both have been
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fighter makers. you've been around the world, va is campaigning for your fighter, and obviously you guys are in winning business as well. how do you make sure this collaborate business. >> we know well that va is one of the top head of the typhoon fighter and we're head of the hifa. to be able to cooperate, yes we will compete for actual existing aircraft today in fighters. but we will look at the future, knowing that in europe we don't have space so much, or finance to be able to develop by ourself alone this type of new vehicles. and if we don't find the right partner, well we could disappear in this field.
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against italians or americans. so we have a common interest and this is business. so we will compete, but
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euro fighter has been ordered by its four partner nations, britain, germy, britain and spain. but india is seen as critical to keep production going. we caught up with enzo cazellini at the air show. >> congratulations with india where you were chosen for the fighter competition. i want to start by asking you, how do you expect to win.
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how do you expect to beat euro. >> let me start by saying that we're going to -- we have cooperation with india and france. we know india, we know the country and we believe that india can make boosts from the political level and continue this full type of click collaboration with spain. >> reporter: and do you feel you have a stronger industrial cooperation package as well. >> we have also very strong cooperation. we believe that all together we can offer much more attractive
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situation for the future development of india industry. >> reporter: of the whole order of aircraft about 130 aircraft or so, 18 of them are supposed to be built in europe in existing factories but the rest coproduced with hanestan in india. but hanesta had some troubles, the euro fighter is a more significant aircrafter, how are you going to make sure that if you win the contract that you're not going to have some of those quality and production issues that the hawk had? >> well this would be something that we will get together with the indian authorities and try out to do the best but the idea is to in the joint venture that we are obliged to do you know cooperate with india, we will
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try to do our best and we are ready to see -- to look into the experience already made with the work as you mentioned. we know how to deal with this kind of matter. so the results has to be efficient. and therefor we would make joint ventures
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it as an -- that's the strategy we're using and we believe this could be a winning strategy.
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>> let me take you globally, where is the other opportunities and how many more euro fighters do you plan to build. >> i see malasia as a possible country. and then i see some eastern european countries in which we of course all of them, they need a very small number of aircrafts but they could be a synergy all together. >> reporter: pool them together. >> yes, pool them together. >> reporter: do you have a number? >> we're thinking about 500 aircrafts all together in the next 20 years. we believe that euro fighter could go for 250. that's roughly the number we are looking at. >> reporter: there's concern in europe that both euro fighter and rafal are mature airplanes at this point. and that they need, the companies will need new work, new development work in order to stay in that cutting age. is that a concern or do you think you have enough work to
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support you until the next major aircraft project? >> i believe that as far as capability is concerned, we still have a road map of announcing capability for at least the next 10, 15 years. so this will keep our capabilities still refreshed if i can say so. but of course the europeans countries need to see what they're going to do with cooperation. because i don't see any more aircrafts in europe for the moment. so to call it a success in europe, still they have to decide what they want to do. >> reporter: i appreciate [ kate ] if this icelandic mud could work wonders on my skin,
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perhaps no defense secretary as been as lotted as he leaves office an bob gates. he are tired last week after 20 years on the job. he focused on war -- he framed the debate on the pentagon like the key issues to cut unnecessary war spending. he floated many ideas but quickly prioritized the battles he could win. he didn't come to the office a reformer but became one. calling on the acquisition system. trimming bloated commands and staff. despite decades in government
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and firing sbordnants. now his successor leon penneta. thanks for joining us for this week in defense news, i'm vago muradian and now to breaking news. we received news that tom green died of a heart attack. tom was 65. he was senior editor of defense news when i started working for him and i followed limb to air force times. tom was a fiery. he insisted on perfection and he was an incredible teacher. tom made me a better journalist, writer and editor
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